THE IMPACT OF BRAND VALUES ON CUSTOMER BRAND LOYALTY IN YOUTH SEGMENT

January 2013

THE IMPACT OF BRAND VALUES ON CUSTOMER BRAND

LOYALTY IN YOUTH SEGMENT:

SPECIAL REFERENCE TO SOFT DRINK MARKET IN SRI

LANKA

Abstract

Customer loyalty is regarded as one of the key factors for organizations. Managers and

marketers are trying to keep their brand loyal customers and trying to avoid competitors

absorbing of these customers. Brands, just like people, have values. This research has focused

impact of brand values on customer brand loyalty. This research has mainly focused on brand

values of product quality, brand personality, emotional appeal and value proposition are

influenced the customer brand loyalty towards the soft drink brand brands.

Key Words

Brand Value

Brand Loyalty

Youth Segment

The Impact of Brand Values on Customer Brand Loyalty In Youth Segment

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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

As the competition in the market grows day after day, many companies realize the value of

their existing customers more and seek to improve their customer loyalty through the creation

of satisfaction. The consistent pursuit of the customer loyalty started from the early 80s.

Afterward, most companies developed and examined some forms of customer loyalty

strategies. Customer loyalty is regarded as one of the key factors for organizations, which

causes their profitability and success a brand becomes successful only if its owners have an

accurate perception of its constitutional assets. In case of important of the brand, the brand

values play a vital role. Brands are among the important issues associating with the

companies‟ products. The companies make long-term investments on their brands.

It is the investment for brand management, in such a way that it both preserves the brand

values and do not miss the customer loyalty through the preservation of the brand‟s

characteristic. Since many factors affect the customer loyalty, In order to manage customer

loyalty in the best way, the organizations must be able to communicate with their customers

in the best way and identify their needs and demands. The loyal customer has a positive

attitude towards it and is less sensitive to its prices. In this study attempt to study how the

impact of brand values on customer brand loyalty in soft drinks.

Once upon a time a soft drink was considered as a prestigious product and it has become

acceptable to people of every age group. The first soft drink business was begun in 1783 as

an artificial mineral water. Using the modern brand name, an Atlanta pharmacist began to sell

Coca- Cola as a tonic in 1886. Mr. Sattar was the first entrepreneur to be involved with the

marketing of soft drinks in 1965. Gradually it is becoming more popular in the consumers'

world and its demand is world- wide.

Nowadays soft drinks have become essential part in lifestyle of the people in the society.

There are number of soft drink brands are available in the market. In those brands, some

brands are very famous not only in Sri Lanka but also globally. All companies doing lot of


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things to create a loyal customer base towards their brand by giving a value to the customer.

Researcher selected that area because of companies invest lot of money in increase the brand

values. Then investigate the relationship between loyalty and brand values in this study, the

relative effects of some factors of brand values on customer loyalty are simultaneously

examined.

1.2 INDUSTRY OVERVIEW

The food and beverage industry in Sri Lanka has become a thriving sector in the economy

propelled by the post war optimism and reaping maximum benefits from peace dividends

since May 2009. Contribution to the Private Consumption Expenditure (PCE) by the food and

beverages industry was recorded at 37.8 % of 2011.

The food and beverage sector industries listed in the Colombo Stock Exchange (CSE)

witnessed a staggering growth of 42 % subsequent to the cessation of the 3-decades-long

internal conflict. The private sector took full advantage of the end of the prolonged war by

entering into untapped markets in the North and East provinces. Private sector firms in the

food and beverage industry penetrated the North and East provinces in a massive wave

increasing firm level earnings by two to three folds. Post conflict buoyancy in the tourism

industry also facilitated in expanding the food and beverage industry on a substantial scale.

The soft drink market comes under the food and beverages sector. The soft drink market has

significant contribution to the food and beverages sector. Carbonated soft drinks are a thirst

quencher and consumers are known to purchase them mostly on impulse. This requires the

product to be widely available, especially in its chilled form, inplaces where impulse buyers

could readily purchase them.

Manufacture of beverages recorded a growth of 10.2 per cent in 2011 compared to 19.7 per

cent in 2010, mainly contributed by the growth in soft drinks. The production of beverages

benefitted from enhanced market access to the Northern and Eastern provinces, increased

consumer spending on account of improved income levels as well as the high growth

momentum of the tourism sector.

Statistics indicate that there will always be a market for carbonated soft drinks, because these

are popular and command a global market share of about 50% of all beverages. Sri Lanka‟s

economy has grown significantly, over 8% in the 2011. GDP per capita increased to US$


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2836 in 2011, compared to US$ 2400 in the previous year (Source: Central Bank of Sri

Lanka). The income trends of consumers‟ indicate that more people can now afford to

purchase and consume soft drinks, which augur well for market growth. However, rising

inflation has reduced the disposable incomes of consumers significantly, impacting on market

growth.

There are 5 main industry players in carbonate soft drink market in Sri Lanka. They are

Ceylon Cold Stores Ltd

Coca-Cola Beverages (Pvt) ltd

Varun Beverages Lanka (Pvt) Ltd (Pepsi)

Pet Packaging (Pvt) Ltd (My Cola)

Shaa Cola beverages (Pvt) Ltd

Ceylon Cold Stores Limited (CCS), also known as Elephant House, has established itself as

the leader in Sri Lanka‟s carbonated soft drinks market, gaining a 47% share and

outperforming leading multinationals such as Coca-Cola, Pepsi and other local brands in a

highly competitive business environment. CCS manufactures a variety of soft drinks such as

Ginger Beer, Orange Barley, Cream Soda, Lemonade, Necto, Orange Crush, Soda, Peyawa

and newly entered brand to the market Kik kola, with most of these products having a history

as old as the company itself.

Second market leader in soft drink market in Sri Lanka is multinational Coca-Cola Company

which provides variety of internationally popular brands such as Coca-cola, Sprite, Fanta,

Portello. CCBSL produces and sells over 10-million unit cases of carbonated soft drinks per

annum. It operates through a countrywide distributor network, consisting of about 128

distributors.

Varun Beverages Lanka is the franchise for Pepsi-Cola brands who is the franchise owner of

Neganahira Nagas in Sri Lanka Premier League. They can target young segment easily by it

because Cricket is the most popular sport in Sri Lanka. They manufacture and distribute

internationally known brands Pepsi, Mirinda, 7up. Rather than these main 3 competitors there

are 2 companies My beverages and Shaa beverages provide soft drinks similar to product of

major competitors


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1.3 RESEARCH PROBLEM

Marketers‟ survival depends on consumer loyalty. Consumer loyalty depends on their

perception and brand preference of the particular brand. With this in mind, the wishes of

businessman to achieve customer brand loyalty can indeed become a reality with several

efforts. To remain a competitive business, companies should treat customers as friends. In

order to achieve this goal, managers should use the strategies to create values to the customer.

Organizations in both public and private sectors have learned that the ability to communicate

effectively and efficiently with their target audiences is important to their success.

If a particular brand maintains a significantly higher perception of value to a consumer than

any other brand in the category, that consumer will consistently purchase that brand and

consistently recommend that brand to others. Conversely, as brands in a category become less

differentiated in terms of both tangible and intrinsic features, price becomes the major

differentiator of values, and thus, there is little loyalty.

Marketers should know their market power originates from the creation of brands for their

products, and powerful brands bring about customer loyalty for them. The most distinct skill

of the professional companies may be their ability to create, keep and develop their brands.

This study deals with the investigation of the role of brand values in the creation of customer

loyalty in Soft drink among youth generation in Sri Lanka. So the research problem in this

research to what extend Brand values impact on the Degree of Customer brand loyalty?

1.4 RESEARCH QUESTIONS

1. What is the impact of brand values towards the brand loyalty of customer?

2. How each brand value would influence for customer loyalty?

3. What is the customer attitude towards brand values when they buy a soft drink?

4. How brand values influence when consumers recommend a brand others?

5. What is the most important brand value for customer loyalty?

6. What is the consumers‟ ability to recognize brand values?


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1.5 RESEARCH OBJECTIVES

Key Objective

Determine the impact of brand values towards customer brand loyalty.

Specific Objectives

1. Examine the customer attitude towards brand values when they buy a soft drink.

2. Find out impact of brand values when consumers recommend a brand to others.

3. Find out most important brand value for customer loyalty.

4. Examine the consumers‟ ability to recognize brand values.

5. Identify how soft drink companies can use brand values to make loyal customers.

6. Provide some recommendations to soft drink companies.

1.6 SIGNIFICANCE OF STUDY

It is important for the marketers to build up loyal customers to ensure the success of business.

Customer loyalty is one of the most important issues organizations face today. Creating loyal

customers has become more important in Soft drink market due to significant increase in

competition. Customer loyalty is regarded as one of the key factors for organizations, which

causes their profitability and success a brand becomes successful only if its owners have an

accurate perception of its constitutional assets. In case of important of the brand, the brand

values play a vital role. Brands are among the important issues associating with the

companies‟ products. The companies make long-term investments on their brands.

Businesses are trying to attract and building a loyalty through satisfy customers. The aim of

this study examines the significance of brand value on customer brand loyalty. The objectives

of the study are determining relationship between of brand value with customer brand loyalty

towards soft drinks brand in youth segment. So that is more important to marketers extend

their business by creating loyal customers.


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.

1.7 HYPOTHESES

H0: There is a significant impact of product quality on customer brand loyalty

H1: There is a no significant impact of product quality on customer brand loyalty

H0: There is a significant impact of brand personality on customer brand loyalty

H1: There is a no significant impact of brand personality on customer brand loyalty

H0: There is a significant impact of emotional appeal on customer brand loyalty

H1: There is a no significant impact of emotional appeal on customer brand loyalty

H0: There is a significant impact of value proposition on customer brand loyalty

H1: There is a no significant impact of value proposition on customer brand loyalty

1.8 RESEARCH METHODOLOGY

1.8.1 Sources of Data

There are mainly two ways to collection of the data. That are,

1. Primary data

2. Secondary data

The method of collecting them is further explained in this section.

Collection of secondary data,

Secondary data was needed for the study when selecting the most popular brands & sample

for the survey. The secondary data will be gathered by reports articles, journals and books.

And Some Statistics gathered from Central bank of Sri Lanka and Census and statistics

department.

The primary data is collected for the special purpose. That is the research problem. In that

way questionnaire for collect the research data. With the questionnaire method, the accuracy

and reliability of the data are secured. The study was mainly conducted by using

questionnaires. The well prepared questionnaire was used to gather essential data from the

customers


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1.8.2 Sampling Plan

The sample selection firstly identified the population then after decides the sample. In that

way the sampling techniques are,

Probability sampling technique

Non-probability sampling techniques

In that way population should be the youth between ages of 15 & 30 in Sri Lanka. And

randomly select the 50 respondents in each Colombo & Gampaha districts as the sample for

the data collection

1.8.3 Data Presentation & Analysis Method

Data collected through questionnaires and analyzed in a quantified basis. Each question in the

questionnaire is analyzed critically in order to analyze the each research question separately.

For data analysis purpose, researcher used a prominent data analyzing software called SPSS.

As the analytical tools, hypothesis testing and Standard deviation is used.

After using these software and the analytical tools, the gained findings are presented in

graphical form by using pie charts and bar charts. By critically analyzing those findings, built

hypothesis will be testing and the relationships among the variable were identified. Then they

were presented in both numerical and graphical forms.

Descriptive analysis is done for the calculation of Mean, Standard deviation, Frequencies,

and percentages for the Independent and Dependant Variables. Pearson‟s Correlation will be

used to measure the strength of the linear relationship between two variables by measuring

the degree of „scatter‟ of the data values. This reflects whether the theory is true or false. The

graphical representation of the data has been used for the purpose of meaningful presentation

and rational interpretation.


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1.9 LIMITATIONS OF THE RESEARCH

A research is only focus on the Carbonate drinks brands so people who are using the non-

carbonate drinks such as natural drinks based on fruits because health considerations are not

match with the research questions. And also sample is only the respondents of Colombo and

Gampaha districts. It is decreasing the reliability of the research due to the reason of only two

districts not representing the whole soft drink market. Other than that sample size also

insufficient to such a vast research. And the validity of this research is in question as people

might be in a hurry to complete it and so might not give accurate responses

1.10. CHAPTERIZATION

Total research will include six chapters and which are as follows

Chapter 1- Introduction

This chapter represents the background of the thesis. As instance it contain research problem,

research objectives, research questions and information which require laying the foundation

of thesis.

Chapter 2- Literature Review

It contains the research articles, relevant theories and concepts which have written relevant to

particular research topic and the previous researches. This will support to understand the

prevailing vacuum in the industry.

Chapter 3- Conceptualization and Operationalization

Under this chapter mainly define the variables and interpreting the conceptual framework.

Chapter 4- Research Methodology

This contains formulating hypotheses, sampling plan and scaling of the data.

Chapter 5- Data Presentation and Analysis

Mainly testing hypotheses is conducting under this chapter and analyze the variables.


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Chapter 6- Summary and conclusion

Conclusion and suggestions are going to be presented here as the eventual task of the thesis.

1.11 CHAPTER SUMMARY

Under the first chapter discuss the background of the study, industry overview, research

problem, objective of the study, how can collection of data, significance of the study and

hypotheses development. Mainly first chapter discuss the overall idea about the conduct the

research.


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CHAPTER TWO

LITERATURE REVIEW

2.1. LITERATURE REVIEW

2.1.1. Studies of Brand Loyalty

Brand Loyalty is an important concept of today‟s brand marketing world. Many definitions

were being proposed by many researchers, among which the most complete definition was

being proposed by Jacoby and Olson (1970). They defined brand loyalty as the result from

non-random, long existence behavior response, and it was a mental purchase process formed

by some certain decision units who considered more than one brands. In early researches,

researchers usually took the act of repurchase as the method of measure brand loyalty. But

some researchers indicate that to measure brand loyalty the best way is to measure by

affective loyalty (Bennett and Rundle-Thiele, 2000).

Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or otherwise

continue using the brand and can be demonstrated by repeated buying of a product or service

or other positive behaviors.

According to the study conducted by Oliver (1999), the brand loyalty was classified into four

parts: cognitive loyalty, affective loyalty, conation loyalty and action loyalty. Day (1996)

added two indicators, action and affection for brand loyalty and divided brand loyalty into

true brand loyalty and spurious brand loyalty. The spurious brand loyalty consumers may

make repeated purchases only because the brand they purchase is the only one choice in the

stores. On the other hand, true brand loyalty consumers should show both psychological and

affective commitments in addition to repurchase consistency. As shown in Figure 2.1, Dick

and Basu (1994) classified loyalty into:

1. True loyalty 3.Latent loyalty

2. Spurious loyalty 4. No loyalty.


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Figure 2.1 Degree of Loyalty

Repeat Purchase Possibility

High Low

Related High

Attitude Low

Source: Dick and Basu (1994)

It is admittedly true that shopper allegiance for a brand in truth contributes much to

marketing. According to the concept of brand loyalty, it is regarded as the essential feature of

brand value. The American Marketing Association gives it the explanation as “the situation in

which a consumer generally pays money for the same manufacturer-originated product or

service repeatedly over time rather than buying from multiple suppliers within the category”

or “the degree to which a consumer consistently purchases the same brand within a product

class”(2006, qtd in Moisescu).

The author draws attention to the fact that since other descriptive aspects of brand equity,

such as considerable quality, associations and awareness, all have consanguineous

relationship with purchase and appreciation, they can guarantee the level of brand loyalty. It

follows that brand fidelity may add the satisfaction of other dimensions of brand value. For

example, brand devotion always leads the payers to believe the perceived quality of the brand

is better than others.

Typical loyal purchasers are less sensitive to price. Because of this, when a product mark up,

they won‟t lessenthe quantity of they buy. It is the view of Reilly (2008) that loyal customers

deem the assessment of the product .As a consequence, they strong believe their choices. In

that case, they trend to center less on the price.

The potential benefit that the loyal customers are able to add is that they may bring in more

new consumers. At the same time, these potential consumers are also possible to become the

future loyal customers. A good example of this is that when one repeatedly buy the same

brand cosmetic, and consider it convenient to use, he will recommend it to his classmates and

girl friend. Hence, there is no wonder that people around always own the same brand of

True Loyalty Latent Loyalty

Spurious Loyalty No Loyalty


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clothes as well as other commodity. In contrast, if people around me complain the poor

quality of a brand to me frequently, I won‟t think of owning it as well.

Most of all, in the global economy, client brand dependability stands out as an important

competitive weapon. Kust (2008, p.24) correctly argues that the world has switched into a

global business in the last 10 decades; developing the brand loyalty globally is essential to

enter the market. He goes on to indicate that in order to keep a trust relationship with their

consumer, corporations should create a customer brand loyalty program among customers.

According to Vraneševic and Stanandccaronec (2003), the importance of product brand can

be seen primarily in its impact on consumers‟ choice and their loyalty towards the brand

through identifying and differentiating quality. In other words, customers will more likely to

become loyal to a brand when the particular brand is perceived to provide the level of quality

that can meet customers‟ expectations. Similarly, Ruyter, and Bloemer (1998) has found that

there was a positive relationship between perceived service quality and service loyalty when

they conducted series of studies for five different service industries. The same goes to

perceived quality and brand loyalty as well because customers‟ perception of quality towards

a product or services may enhance their loyalty towards a brand.

Brand loyal consumers are more willing to pay more for a brand because they perceive some

unique value in the brand that other brand cannot provide (Jacoby and Chestnut, 1978;

Pessemier, 1959; Reichheld, 1996).This uniqueness most probably derived from greater

brand trust in the reliability of a brand or from more favorable affect when customers use the

brand (Chaudhuri and Holbrook, 2001). In the commitment-trust theory, Morgan and Hunt

(1994) stated that trust is a key variable in the development of an enduring desire to maintain

a relationship in the long term e.g. the long term relationship might be developed towards a

brand due to the trusting relationship that the customer has. Likewise, Ballester and Aleman

(2001) found that there are possible conceptual connections of trust to the notion of loyalty

and this actually drives the authors to focus on Aust. J. Basic & Appl. Sci., analyzing the

relationships existing among these concepts. Subsequently, the results suggested that brand

trust play an imperative role in generating customers' commitment towards a brand or brand

commitments towards a particular product. In other words, brand trust as one of the variables

in their study would possibly effects the level of brand loyalty. Thus, brand trust is included

in the theoretical framework of this research.

Brand image play an important role in brand building, especially in customer dependability.

As Reichheld (2001,qtd in Hsieh and Li,) perceptively state that preferable brand image will

lead consumers to conceive a perception of an organization‟s public relationship practice,


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which matches the corporate reputation better. With this in mind, customers are more likely

to retain optimistic faith, attitude, and action. It must be therefore be acknowledged that

customer loyalty grows fast through approving brand image.

Understanding loyalty is essential for marketing practitioners as loyal customers are less

likely to switch and make more purchases than similar non loyal customers (Reichheld,

1996; Reichheld and Sasser, 1990), thus if the company can retain just 5% more of its loyal

customers, profits will increase by 25% - 125% (Reichheldand Sasser, 1990). Reichheld‟s

(1996) is further supported by Strauss and Frost (1999), who suggest that relationship

marketing is cost effective; it is less expensive to retain one customer than to acquire one; it

is easier to sell more products to one loyal customer than to sell the same amount to two new

customers. This means that, it is easier to persuade loyal customer than to persuade new

customers. The loyal customers normally have more confidence towards the firms compared

to new customers.

Theoretically, brand loyalty could be enhanced by maintaining the long term relationship

with the customers in that it could help in creating the competitive advantages for any

particular company. Normally, in order to increase the market share, most companies are

utilizing common strategies such as discounting their market prices (having price war with

competing brand), expanding their distribution channels or even launching promotional

campaigns (Cravens, 1994). However, it would be more cost effective and profitable to

increase the market share that could be sustained over time though effectively strategizing the

brand loyalty rather than using the common short-term strategies. Once the relationship or

loyalty is build, it would be easier for the companies to achieve sustainable competitive

advantage.

2.1.2. Studies of Product Quality

In today‟s intense competitive market, the marketers are looking towards building a long term

profitable business relationships with the customer. The whole marketing orientations has

changed from the production concept to the marketing and societal concept. In marketing

concept, the achievement of the overall organizational goals depends on how best is a

company in delivering satisfactions better than the competitors (Kotler and Armstrong,

2010). From the marketing point of view, competitive advantage can be achieved through a

series of intermediate objectives such as perceived quality, achieving satisfaction, greater


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commitment and confidence on the part of customers, as well as a final objective, which is to

enhance loyalty.

Product quality is defined as „Differences in quality amount to differences in the quantity in

the desired ingredient or attribute‟ (Abbott, 1955). As mentioned by Garwin (1984), there are

8 dimensions of quality which include performance, features, reliability, conformance,

durability, serviceability, aesthetics and perceived quality. Product quality can be analyzed

under the concept of two different perspectives, objectives quality and perceived quality

(Brunso et al., 2005). The objective to measure the quality is determined by intrinsic and

extrinsic attributes. The intrinsic or the inner attributes refers to something that are related to

the physical of the product (color, appearance and etc) whereas perceived quality or extrinsic

attributes exist in the form of non-physical but related to the product (brand name, stamp of

quality, product information and etc). The differences between objective quality and

perceived quality lie in that objective quality has a pre-design standard to a product, and

perceived quality is influenced by internal and external product attributes which is an

evaluation basis for consumers (Olshavsky, 1985; Zeithaml, 1988). Kan (2002) points out

that objective quality is that consumers will use their experience and knowledge to evaluate

overall product benefit, function, durability, technology and reliability when consumers

purchase a product. Perceived quality is a consumer judgment on the accumulative product

benefits and a subjective feeling on product quality (Zeithaml, 1988; Dodds et al.,

1991).Aaker (1991) argues that perceived quality can show the salient differentiation of a

product or a service and becomes a selective brand in consumers‟ mind.

In order to increase the brand loyal customer base, it is suggested that an organization needs

to create the awareness, reputation, image, reputation, brand extension, innovation and

perceived quality of its product. It is also noted that to create brand loyalty, an organization

needs to create a valued based which is preferred relationships with the customer. Product

owners need to work out on the volume on relevance, emotional connectivity and customers‟

experiences in order to hook customers on stay with the said brand. Best-practice

organizations recognize that the emotional aspects of their brand are reflected in how

customers experience that brand across every touch point. Today's loyalty programs enable

companies to execute against these opportunities by helping them better understand customer

motivations, and then deliver on these unique insights through mass customization – not mass

communication. (Pearson, 2006)


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A good quality product creates customer delight. In turn, delighted customers remain loyal

and talk favorably to others about the company and its product. Studies show big differences

in the loyalty of customers who are less satisfied, somewhat satisfied and completely

satisfied. Even a slight drop from complete satisfaction can create an enormous drop in

loyalty (Kotler and Armstrong, 2010). Several researches have been done and it was noted

that there are positive relationship between performance quality and customer satisfaction.

However the correlation differs between one product and services to another. According to a

research constructed by Croanin and Taylor (1992) who examined for businesses, found

strong correlation between satisfaction and loyalty for fast food and dry cleaning.

If the consumers recognize, quickly recall, and are aware of the brand, this can is a sign of

quality and commitment. Thus, a buyer aware of a brand with favorable associations in

her/his mind and able to recognize quality is more willing to consider this brand at the time of

purchase, which leads to a favorable behavior towards the brand.

2.1.3. Studies of Brand Personality

In the business world of today, every company is trying to get the attention of the customers

by creating a distinctive brand image for their products. Pepsi is often perceived by

consumers as more “young,” Coke as more “real and honest,” Dr. Pepper as more “non-

conformist and fun” (Aaker 1997, p. 348). These kinds of human characteristics associated

with the brand are called “brand personality”.

Brand personality mainly comes from three sources: the first one is the association consumers

have with a brand, secondly, the image a company tries hard to create. Aaker (1997) defines

brand personality as “a set of human characteristics associated to a brand.” Hence, brand

personality offers the functions of self-symbolization and self-expression (Keller, 1993).

Levy (1959) indicates that brand personality contains demographic features, such as gender,

age and social class, and they may be directly influenced by the image of the brand users,

personnel and product spokespersons, and indirectly affected by product attributes as well.

Brand Personality is a differentiating element in an environment of symbolic consumption

(Lannon, 1993), which is presented to the consumer as a vehicle of self-expression and the

expression of an ideal (Sirgy, 1982; Malhotra, 1988), and a source of personal and social

meaning (Levy, 1959; Allen & Olson, 1995; J. Aaker, 1995, 1997). Brand Personality is thus

a factor that influences consumer choice and preference (Biel, 1993) and, as such, is an


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element that generates value for the consumer and for the company (D. A. Aaker, 1991,

1996).

Also a strong, favorable brand personality can provide consumers with emotional fulfillment,

image enhancement, an increased willingness to remain loyal to the brand, to try a new brand

or brand extension and to pay premium prices for a brand. BP can be the principle

differentiation basis when there is little or no distinction other than the brand (Aaker 1997,

Freling & Forbes 2005b, Venable et al 2005, Chang & Chieng 2006).

Most of the authors accept the approach that considers brand personality as a set of human

characteristics linked to a brand. A long term relationship between brands and loyal

customers is based upon clear and string brand personality. A real and affective closure to the

customer can only be achieved when a brand evokes human features. The dimensions of

brand personality are supposed to be correspondent to those identified in the case of human

beings by psychologists.

According to Jennifer Aaker, he suggests Sincerity (typified by traits such as wholesome,

down-to earth, and honest), Excitement, (typified by traits such as daring, imaginative, and

exciting), Competence (typified by traits such as intelligent, secure, and confident),

Sophistication (typified by traits such as glamorous, smooth, and charming) and Ruggedness

(typified traits such as strong and masculine).By using various marketing approaches, a

company may convey their brand personality to consumers and have the consumers of

varying personality traits believe and recognize the company‟s brand personality; thus,

consumers may develop some kind of relationship with the brand, which will further

influence their brand loyalty.

Many of the studies are conducted to show the relationship between the brand personality and

the brand loyalty of the customer and the consequences have being analyzed. Additionally, it

is found that by involving the concept of brand personality, the brand loyalty can be

enhanced.

It might be that consumers like the brands having more distinct brand personality, and it is

also likely that consumers are more familiar with the brands they prefer. Consumers may

likely use the brand and products in line with their own personality traits, in other words, all

the marketing activities are aimed at having consumers believe and recognize a brand

personality, and reinforcing the communication between the brand and the consumer (Govers

and Schoormans, 2005), in order to enhance the brand‟s loyalty and equity.

Mengxia (2007) investigated the Influence of brand personality on consumers‟ brand

preference, affection, loyalty and purchasing intention. The results of his study shows that


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brand personality has a positive influence on brand preference, affection, and loyalty and

purchase intention. A brand personality should be shaped to be long-lasting and consistent.

Besides, it should also be different from other brands and meet consumer‟s demands (Kumar

et al., 2006). Also a study conducted by Kumar et al. (2006) sorted out the connection

between brand personality and brand loyalty, and separately used durable goods (cars), and

consumer goods (tooth-pastes) to explore the relationship between brand personality and

brand loyalty.

2.1.4. Studies of Emotional Appeal

Many authors have discussed about what is emotional appeal and its importance on building.

Here researcher gives a theoretical based view of how we can generate brand loyalty through

emotional advertising.

Emotions are kinds of mental feelings, which together with moods and attitudes form the

umbrella concept of affect (Bagozzi, Gopinath, and Nyer 1999). More specifically, emotion

has been defined as a "mental state of readiness that arises from cognitive appraisals of events

or thoughts, has a phenomenological tone, often expressed physically, accompanied by

physiological processes, and may result in specific actions to affirm or cope with the

emotions" (Bagozzi, Gopinath, and Nyer 1999). Holbrook and Batra (1987) called for a

broadening of the unidimensional view of affect to encompass the full gamut of emotions,

and these emotional reactions include not only liking and disliking, but also love, hate, fear,

anger, joy, sadness, and so on.

Emotions are ubiquitous throughout marketing as they influence information processing,

mediate responses to persuasive appeals, and measure the effects of marketing stimuli

(Bagozzi, Gopinath, and Nyer 1999). Affective responses, such as moods and feelings evoked

by an advertisement are found to be antecedents of the attitude toward the ad (Batra and Ray

1986). It is widely accepted that emotions and moods trigger buying responses (Gardner

1985). How and to what extent emotional reactions to ads influence consumer decision-

making has attracted attention from a number of researchers in recent years. Geuens and De

Pelsmacker (1999) tested emotions and affect intensity on communication effects of different

emotional (warm, humorous, and erotic) and non-emotional advertising appeals. They found

that affect intensity seems to be mood specific, and the predicted effects of affect intensity

seem to occur more in the case of warm and humorous appeals than erotic appeals


Page 19

McGuire (1969) argues that there is no difference between emotional appeals and rational

appeals in terms of the effectiveness or emotional appeals are more effective. Holbrook and

Hirschman (1982) suggested that emotional appeals come from the emotional, experiential

side of consumption. Choi and Thorson (1983) found that emotional ads were better than

rational ads by most recall measures. Emotional appeals make a brand liked or friendly (Batra

and Ray 1985).

Where, Kotler and Armstrong (1991, 426-427) define emotional appeal as an: “attempt to stir

up either negative or positive emotions that can motivate purchase. These include fear, guilt,

surprise and shame appeals that get people to do things they should or stop doing things they

shouldn‟t. Communicators also use positive emotional appeals such as love, humor, pride,

hope and joy.”

An appeal, according to Manrai et al. (1992), is the basic idea behind an advertisement or the

basic reason why an audience should act. Emotional appeals are often strategically employed

to influence consumers indirectly and make the consumer feel good about the product (Calder

and Gruder 1989) relying on feelings for effectiveness (Aaker et al 1992).

When it comes to changing the message receiver‟s beliefs about the advertised brand

(Stafford 1993), Emotional appeal ads may have rational appeal components while rational

appeal ads can have emotional appeal component respectively. Stafford (1993) suggests that

both types of meanings occur in all ads and only case by case does the balance vary.

However, Aaker, Stayman and Hagerty (1986) found a positive relationship between the level

of warmth created by a commercial and the attitude toward the ad Page, Goldberg and Gorn

(1987) also reported more positive reactions for emotional appeal advertisements than for

informational appeal advertisements. Thorson and Heide (1990) also found that emotional

advertisements may be more effective and memorable than rational advertisements.

One of the most critical concerns advertisers express about television advertising is the

potential decline of the persuasive impact on TV spots because of increasing clutters in the

media environment. To make advertising appeals more distinctive and hence, perhaps more

persuasive, advertisers frequently use dramatic emotional ads messages designed to “shock

the emotions and make the brain itch” (Moore 1989)

Such advertising executions often feature high impact, sensually evocative appeals that

stimulate strong positive emotions (e.g., the Hallmark greeting card ads dramatizing precious

moments and nostalgic memories in life). However, advertisers also employ graphic and

sensational negative emotional advertising messages such as those used by insurance

companies, healthcare institutions, drug and alcohol abuse clinics, food manufacturers


Page 20

exploiting consumers' fears of cancer and cardiac diseases (Alsop 1988), and public service

agencies making appeals to prevent child abuse or to promote the use of contraceptive

devices (LaTour and Pitts 1989).

Researcher has gone through the definitions of emotional appeals from different authors

given in different times. Their thoughts and findings are similar somewhat but also vary as

the time changes, from these definitions can get a clear view about emotional advertising and

to some extend its importance. Basic purpose of emotional appeals is to engage more and

more viewers into the brand and ultimately influence them to buy the product. As we know

that marketing‟s basic function is to target the need of people while emotional appeal aim the

hidden feelings behind that need, and then eventually through this marketers can create brand

loyalty.

2.1.5. Studies of Value Proposition

A value proposition is presented to customers highlighting what they get from your using

products or services. Value propositions typically show benefits of the company and what the

customer can expect to experience through the process. This statement should make the

customer see why they should choose your company over another. The more specific a value

proposition is the better. This will reduce any uncertainty among the customer and let them

know upfront what they can expect. Strong value propositions will be able to grab the

customers‟ attention and make them want to know more.

Creating and delivering the value proposition are critical issues that marketing planners

should consider in planning strategies. These days, a high level of competition and rapid

changes in the market and technology make it complex for a company to sustain momentum

without focusing on deliver the value that customers require. Value propositions vary across

industries and across different market segments within an industry (Kaplan & Norton 1996).

Capon and Hulbert (2007) linked the success of firms in the marketplace to the value

provided to customers. They introduced a principle of customer value, with customer insights

driving the company‟s marketing activities. Customer value should also drive investment and

production decisions, because customers perceive value on the benefits of the product or

service they receive. Consequently, as the environment changes, and the customer experience

and their needs change, the value they seek also changes. Therefore, most companies

especially leader companies invest more money in marketing research to gain deep customer

insights, in order that they can shape their development plans with deep understanding of the


Page 21

market based on recent history, which is at the “heart of positioning”. Capon and Hulbert

(2007: 251) state that a clear and effective value proposition should be the basis of a firm‟s

functional, psychological and economic value, with related benefits. It shows how to “gain

customers and beat competitors”.

Organizations are successful when customers buy and repeat buy from them. Buying

behaviors and motivations are extremely different between one and another customer. Some

customers seek quality, others prefer quantity, some like a high level of service, and others

desire to do things by themselves. Organizations compete in order to attract more customers

to purchase and repurchase. They provide different types of marketing activity related to their

strategy to satisfy customers and to provide the value expected by their customers. On the

other hand, customers perceive the value provided by organizations differently. This variation

occurs due to the different needs for each customer. Osterwalder and Pigneur (2003) stated

that “Modeling and mapping value propositions helps better understanding of the value a

company wants to offer its customers and makes it communicable between various

stakeholders”.

A value proposition is an explicit promise made by a company to its customers that it will

deliver a particular bundle of value creating benefits (Buttle, 2009). In other words, “the

value proposition is a written statement focusing all the organization‟s market activities onto

customer critical elements that create a significant differential within the customer‟s decision

process, to prefer and/or purchase the organization‟s offering over a competitor‟s”(Fifield,

2007). Lanning (1998) defines the value proposition as an entire set of experiences, including

value for money that an organization brings to customers. Customers may perceive this set or

combination of experiences to be “superior, equal or inferior to alternatives”. According to

Anderson, Narus and Rossum (2006) there are three kinds of value proposition, involving all

benefits, favorable points of difference and resonating focus. All benefits are a complete list

of positive features that a supplier believes its offerings might deliver to end customers as a

result of good knowledge about the customers and the competitors. Favorable points of

difference are the factors that distinguish the supplier‟s offerings among the next alternatives.

To achieve that, detailed knowledge about the next best competitor(s) is required in order to

shape the company‟s strategy. The resonating focus approach differs in two respects: more is

not always better and it is better to focus on one or two key points to deliver to the target


Page 22

customer. Suppliers in this approach must identify the elements that make their offer superior

in order to demonstrate, document and communicate them clearly to the targeted customers.

Lanning (1998) stated that a superior value proposition offers breadth of resulting

experiences, which may make an improvement over other scenarios of experiences. Neither

internally-driven nor customer-propelled methods work well in discovering these scenarios.

Managers must think like customers and listen to them. Michael Porter‟s original competitive

advantage framework presented strategy decisions as a choice between whether to provide

generic low-cost products and services or more differentiated and customized ones for

specific market and customer segments to create and deliver the value proposition (Kaplan &

Norton, 2008). Kaplan and Norton (2006) realized that customer synergies arise when retail

companies consistently deliver the same value proposition across a geographically dispersed

network of retail outlets. When investigating the value proposition, there should be some

visible signs on customers‟ perceived value terms. According to Ravald and Gronroos (1996),

customer perceived value is the trade-off between perceived benefits and perceived sacrifice

(Kar, 2006). Perceived sacrifice involves all of the activities of purchasing, comparing prices,

transportation and installations. Perceived benefits are the physical and technical features of

the product. That means that adding more benefits and reducing sacrifices may increase

customer perceived value.

Fifield stated that “A successfully tested and proven value proposition is essential to a

successfully differentiated business” (Fifield, 2007). As the value proposition can improve

the efficiency and effectiveness of the internal process of a particular product or service, the

results would be many more retained customers and cost reduction, which finally lead to

satisfied shareholders, profit rise and increases in market share. Kar (2006) states that the

ability of a company to provide a superior value for its customers is regarded as one of the

most successful competitive strategies.

2.2. PREVIOUS STUDIES

Reshma Farhat and Dr. Bilal Mustafa Khan has studied Importance of Brand Personality

to Customer Loyalty. Here an attempt has been made to probe into the behaviour of a

customers‟ willingness to buy a brand/product, of what are the related factors which


Page 23

influences his buying behaviour and attitude towards the brand. An investigation is done to

highlight a point of what are the influencing factors which compels him to be a loyal for a

brand. The study findings suggest a conceptual model that combines the theories of brand

personality with the necessary dispositional variables to explain the customer‟s loyalty

processes.

Che Aniza Binti Che Wel (PHD), Syed Shah Alam, (PHD) Sallehuddin Mohd Nor have

studied Factors Affecting Brand Loyalty. This study intended to examine the factors that

could possible affect brand loyalty among young consumer in Malaysia. The results revealed

that product involvement, perceived quality and brand trust are the major factors that affect

consumer brand loyalty.

Mohd Rizaimy Shaharudin, Anita Abu Hassan, Suhardi Wan Mansor has studied The

Relationship between Extrinsic Attributes of Product Quality with Brand Loyalty on

Malaysia. This study is about the discoveries on the relationship between extrinsic attributes

of product quality with brand loyalty. It helps to extend the understanding of a commitment

to re-purchase a product, due to the feelings and effects formed as a result of the perception

of quality. Results obtained in this study with the earlier literature are consistence to confirm

that although the product quality based on the perceived quality (extrinsic attribute) have

significant influence on the brand loyalty.

Faiza Saad M.Phil. (Marketing) has studied Brand Loyalty through Emotional Advertising.

In this study she gave a theoretical based view of how generate brand loyalty through

emotional advertising. Plus what are the drivers of emotional appeal and how to achieve

emotional satisfaction through advertising and its experience.

2.3. CHAPTER SUMMARY

In this chapter, the researcher tried to discuss about the theories and the concepts relating to

the brand values and brand loyalty. Literature also discusses the impact of brand values on

consumer brand loyalty. So it is very useful for the third chapter of this research in order to

develop and conceptualize the variables.


Page 24

CHAPTER THREE

CONCEPTUALIZATION AND OPERATIONALIZATION

3.1. CONCEPTUAL FRAMEWORK

The conceptual frame work is the foundation of which the entire research which used in

research to outline possible courses of action or to present a preferred approach to an idea or

thought. Conceptual frameworks can act like maps that give coherence to empirical inquiry.

Because conceptual frameworks are potentially so close to empirical inquiry, they take

different forms depending upon the research question or problem.

Researcher has logically developed considering the variables relevant to the problem

situation and which have been identified through past research by the researcher. Here

conceptual framework will indicate the relationship between independent and the dependent

variables. So by using those factors, researcher formulated the conceptual framework to

describe the impact of brand values on customer brand loyalty as follows.

Figure 3.1 Conceptual Framework

Product Quality

Degree of Impact on Customer Brand Loyalty

Brand Personality

Emotional Appeal

Value Proposition

Brand Values


Page 25

3.2. DEFINING VARIABLES

Brand Loyalty

Brand loyalty can be defined as the result from non-random, long existence behavior

response, and it was a mental purchase process formed by some certain decision units who

considered more than one brands. Brand loyalty, in marketing, consists of a consumer's

commitment to repurchase or otherwise continue using the brand and can be demonstrated by

repeated buying of a product or service or other positive behaviors

Product Quality

Product quality can be defined as „Differences in quality amount to differences in the quantity

in the desired ingredient or attribute‟. The product quality is determined by intrinsic and

extrinsic attributes. The intrinsic or the inner attributes refers to something that are related to

the physical of the product (color, appearance and etc) whereas perceived quality or extrinsic

attributes exist in the form of non-physical but related to the product (brand name, stamp of

quality, product information and etc).

Brand Personality

The brand personality is a part of the brand image. Brand personality can be defines as “the

set of human characteristics associated with a brand” continues by explaining that the

personality of a brand is similar to the one of a human, e.g. it possesses characteristics such as

age and gender, and human personality traits such as warmth and concern. Brand personality

is both consistent, long- term and that everything associated with a brand affects the

personality of it. And brand personality must be similar to what the target market desires, and

that it has to feel important enough to be associated with this personality.

Emotional Appeal

Emotions are kinds of mental feelings, which together with moods and attitudes form. More

specifically, emotion has been defined as a "mental state of readiness that arises from


Page 26

cognitive appraisals of events or thoughts, has a phenomenological tone, often expressed

physically, accompanied by physiological processes, and may result in specific actions to

affirm or cope with the emotions". These include fear, guilt, surprise and shame appeals that

get people to do things they should or stop doing things they shouldn‟t. Communicators also

use positive emotional appeals such as love, humor, pride, hope and joy.”

Value proposition

A value proposition is presented to customers highlighting what they get from your using

products or services. Value propositions typically show benefits of the company and what the

customer can expect to experience through the process. This statement should make the

customer see why they should choose your company over another.

3.3 FORMULATION OF HYPOTHESES

Researcher analyzed the whole literature related to this study, and come up with following

hypotheses.




H1: There is a no significant impact of Brand Personality on customer brand loyalty






Page 27

3.4. OPERATIONALIZATION THE CONCEPTUAL FRAMEWORK

Concept Variables Indicators Measure Measure

Scale

The Effect of

Brand Values

on Customer

Brand Loyalty

towards Soft

Drink Brands

among Youth

Segment in Sri

Lanka

Product Quality

Ingredients

Degree of consideration

of ingredients‟ quality

Five-point

Likert Scale

Packaging


of bottle shape and its

quality

Five-point

Likert Scale

Standards


of Standardized product

Five-point

Likert Scale

Health Value Degree of consideration

of health value of

product

Five-point

Likert Scale

Brand

Personality

Sincerity


of cheerful

characteristics of brand

Five-point

Likert Scale

Excitement


of excitement

imaginative of brand

Five-point

Likert Scale

Competence


of success of the brand

Five-point

Likert Scale

Emotional

Appeal

Social

Appeal


of social appeal

Five-point

Likert Scale

Lifestyle

Connection


with lifestyle connection

of consumer

Five-point

Likert Scale

Value

Proposition

Value For

Money


of value for money

Five-point

Likert Scale

Experience

Value


of Experience Value

Five-point

Likert Scale

Benefit

Value


of Experience Value

Five-point

Likert Scale


Page 28

3.5 CHAPTER SUMMARY

Under this chapter discuss the conceptual framework of the research and how the

operationalization of the conceptual framework can and discuss the independent and

dependent variables broadly. In that way identify the main three independent variables and

sub variables of each independent variables and dependent variable.


Page 29

CHAPTER FOUR

METHODOLOGY

4.1 INTRODUCTION

This chapter contains the description of the research design, data collection, population,

sampling procedure, data presentation and data analysis content. Under the chapter one

covered the background of the study, industry overview, objective of the study, develop

hypotheses, significant of the study etc. after second chapter discussed the literature regarding

the topic of the impact of brand values on customer brand loyalty.

The purpose of the study is to identify the impact of brand values on customer brand loyalty

in youth segment. Extract the most relevant information from the resources is important,

definition of the research objective are focused. Having a solid objective avoiding research

distracted by other irrelevant elements and keeps the study within certain field & helps to ask

the right questions regarding how to use brand values to build a loyal customer base in youth

segment.

4.2. METHODOLOGICAL CHOICE

4.2.1. Research Approach

There are two methods available for selecting research approach. Those are as follows,

Inductive method: In this method, based on observations and other research findings, the

researcher prepares a theory.

Deductive method: In this method researcher uses conventional theory to develop

hypothesis which are being tested to analyze the findings and to made conclusions to justify

those hypothesis.

The Deductive method will be used in conducting this research. This is to develop a theory

and hypothesis (or hypotheses) and design a research to test the hypothesis (Sunders et al.,

1996).


Page 30

4.2.2. Research Design

The research design is a plan for addressing the research objectives or hypotheses. The

researcher develops a structure or framework to answer a specific research

problem/opportunity. There are mainly three types of research design. Those are exploratory,

descriptive and causal. This study is quantitative and causal and mainly depends on the

answers of the responders. Because investigate whether the value of one variable causes or

determines the value of another variable, in an attempt to establish linkage between them. In

here it primarily based on four fundamentals the Product Quality, Brand personality,

Emotional appeal, & Value Proposition as independent variables. Data collection is focused

on the sub elements in each four elements. One questionnaire has been developed for data

collection from the customers.

4.3. METHOD OF DATA COLLECTION

The data was collected under mainly two categories as primary data collection methods and

secondary data collecting methods. Following sources are the key sources, which were used

to gather information needed to achieve research objective

4.3.1 Primary Data Collection

This research is a quantitative research where sources data for the study will be gathered

through a structured questionnaire. The Questionnaire method considered as the prime tool of

data collecting. With the questionnaire method, the accuracy and reliability of the data are

secured. The study was mainly conducted by using questionnaires. The well prepared

questionnaire was used to gather essential data from the customers.

All variables are operationalized using the literature on brand values and customer brand

loyalty. This study is interested in describing the characteristics of a population or

phenomenon. This study also use hypotheses testing to examine how brand image impact on

customer brand loyalty in youth segment, and the questionnaire will includes questions to

examine it.


Page 31

4.3.2 Secondary Data Collection

Secondary data consist of information that has already been gathered and might be relevant to

the problem at hand (McDaniel & Gates 2008:72).

The secondary data will be gathered by reports articles, journals and books. And Some

Statistics gathered from Central bank of Sri Lanka and Census and statistics department.

4.4 THE SAMPLING PLAN

4.4.1 Population

The objective of this Research was to investigate the impact of brand values on customer

brand loyalty towards carbonate soft drink among youth segment. So the population was

young between age 15 and 30 in Sri Lanka.

4.4.2 Sample

Probability sampling techniques were used in this research for sample selection. The

sampling technique used was a mix of convenience sampling and simple random sampling.

Therefore there was no sample frame used in selecting respondents, which lead to a non-

probability sampling techniques.

The research is focused only on Colombo and Gampaha districts and hopes to get the

information from respondents who are representing those Districts. The total sample was

consisted with 100 numbers of customers in Colombo and Gampaha district with the age

limit of within 15-30

Additionally in order to enhance the representation of the selected sample the researcher

collected data from different office staffs, University students and School students


Page 32

4.5. MEASURING SCALE

All items in the questionnaire were measured on a five-point Likert scale. In that way

measure the impact of brand values towards the customer brand loyalty. There are 4 types of

independent variables and one dependent variable.

Figure 4.1 Five-point Likert Scale

4.6 DATA ANALYSIS

After collecting data which has gathered by the questionnaires analyze & interpret to identify

the solution for the research problem. Each question in the questionnaire has analyzed

critically in order to analyze the each research question separately. For data analysis purpose,

researcher was use prominent data analyzing software called SPSS. As the analytical tools,

hypothesis testing and standard deviation were used. With the help of SPSS analysis system

used data tables to represent the numerical figures of finding as well as Bar charts and Pie

charts are used to show those findings graphically. Because of that users and decision makers

may able to understand the information and to get correct decision on research. Microsoft

Excel will also be used to assist the data analysis process.

Descriptive analysis will be done for the calculation of Mean, Standard deviation,

Frequencies, and percentages for the Independent and Dependent Variables. Pearson‟s

Correlation will be used to measure the strength of the linear relationship between two

variables by measuring the degree of „scatter‟ of the data values. This reflects whether the

theory is true or false.

The analyses will enable to examine the individual relationship between the independent

variables and dependent variable.

1.

Strongly

Disagree

2.

Disagree

3.

Neutral

4.

Agree

5. Strongly

Agree


Page 33

4.7 CHAPTER SUMMARY

Under this chapter discuss how the research was done by the researcher. In that way discuss

the sample design, data collection, data analysis technique, measuring techniques of the data.


Page 34

CHAPTER FIVE

DATA PRESENTATION AND ANALYSIS

5.1 INTRODUCTION

This chapter deals with the presentation of data on the basis of dependent variables and

independent variables of the research model and statistical analysis. Statistical tools such as

mean, mode, frequencies, correlation are used to test the hypotheses and objectives taken in

the study. And also relative importance of the independent variables was presented in this

chapter based on the responses given through the questionnaire of research.

5.2 ANALYSIS OF DEMOGRAPHIC STATISTICS

5.2.1 Analysis of “Gender”

Figure 5.1 Gender Category

Source: Survey Data 2012

The questionnaire was collected from 100 respondents. Those 100 respondents comprise with

68 males and 32 females. (Table 5.1 attached in Appendix)

68

32

0

10

20

30

40

50

60

70

80

Male Female


Page 35

5.2.2 Analysis of “Age” Category

Figure 5.2 Age Category


The researcher used three age category with the age limit of 15-30 for conduct the research.

Because the objective of this Research was to investigate the impact of brand values on

customer brand loyalty towards carbonate soft drink among youth segment. The researcher

used the three age category for conduct the research namely 15-20, 21-25 and 26-30. The

majority of respondents were age between 21-25 years old, & that was 65%. (Table 5.2

attached in Appendix)

5.2.3 Analysis of “Income Level”

Figure 5.3 Income level


13%

65%

22%

15-20

21-25

26-30

42%

18%

23%

15% 2% Less than Rs.10000

Rs.10000-Rs.20000

Rs.20000-Rs.30000

Rs.30000-Rs.40000

Rs.40000 above


Page 36

42% respondents had selected „less than Rs. 10000‟ category as their income level. 18%

respondents were having an income between Rs. 10000 – Rs. 20000 where as 23% of the

total sample were having an income between Rs. 20000 & Rs. 30000. However this indicates

that majority of the sample was having less spending ability with an income level less than

Rs. 10000.Because of the sample is consist significant amount of school students and

university students. (Table 5.3 attached in Appendix)

5.2.4 Analysis of “Occupation”

Figure 5.4 Occupation


When considering about the occupation, almost 28% of the total sample were representing

the Students. Since undergraduates & school students represent the youth segment of the

society, the researcher has accessed the University crowd & school students above age of 15.

However the sample also included 32% of trainees because of most of senior students of

universities have joined with companies as trainees. (Table 5.4 attached in Appendix)

28%

1%

32%

24%

7%

8%

1% Student

Unemployed

Trainee

Executive-Private

Executive-Government

Manager

Self Employed


Page 37

5.3. ANALYSIS OF OTHER APPROACHING QUESTIONS

5.3.1 Analysis of most favorite soft drink brand

Figure 5.5 Most favorite soft drink brands


According to research among 100 respondent‟s 28 persons select Elephant Cream Soda as

their first choice. Coca-Cola has the second place in the market as 19 respondents have Select

Coca-cola as their first preference. Another Cola brand Pepsi has third place in the market

according to research. Fanta has been selected by 11 respondents as their most favorite brand.

Cola and Pepsi has significant market share. The reason of that they are international brands

and world famous brands. (Table 5.5 attached in Appendix)

5.3.2 Analysis of importance of brand values

Respondents were asked to rank the brand values soft drinks. The brands values are provided

to rank are taste and quality, value for money, taste and quality, brand image, design &

associated feelings.

19%

14%

11%

28%

4%

8% 7%

6%

3%

0%

5%

10%

15%

20%

25%

30%

Coca-Cola Pepsi Fanta ElephantCreamSoda

Portello EGB Sprite 7up Others


Page 38

Table 5.6 Importance of brand values

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Total

Taste & Quality 74 10 14 2 0 100 Value for Money 2 38 16 17 27 100 Brand Image 21 41 35 2 1 100 Design 0 6 31 44 19 100 Associate Feelings 3 5 4 35 53 100

Total 100 100 100 100 100 Source: Survey Data 2012

Figure 5.6 Importance of brand values

According to findings most of people give their attention firstly for the taste and quality.

From the sample of 100 respondents, 74 respondents had stated Taste and quality was their

mostly important brand value. 21% of the respondents had ranked brand image as first. But

only 2% of the respondents have ranked value for money as first. 41 respondents had selected

brand image as second while 38% of the respondents had ranked value for money as

second.44% has ranked design as fourth.

These results show that consumers within the sample mostly preferred brand value is taste

and quality. A significant portion of respondents had revealed that they prefer to taste and

quality mostly. They exhibit a less tendency towards associate feelings, while the respondents

within the sample holding a moderate prefer with brand image.

0

10

20

30

40

50

60

70

80

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5

Taste & Quality

Value for Money

Brand Image

Design

Associate Feelings


Page 39

5.4. ANALYSIS OF VARIABLES

5.4.1 Analysis of Product Quality

5.4.1.1 Analysis of impact of quality of ingredients

Researcher took product quality as first variable under the independent variable. Quality of

ingredients was one of the main indicators used to identify the impact of product quality on

brand loyalty towards soft drinks. Respondents were asked whether they become loyal for a

soft drink brand based on the quality of ingredients. Because the high quality of ingredients

could be increase the brand loyalty

Table 5.7 Impact of quality of ingredients

Frequency Percent Valid

Percent Cumulative

Percent

Valid Disagree 2 2.0 2.0 2.0

Neutral 12 12.0 12.0 14.0

Agree 54 54.0 54.0 68.0

Strongly Agree

32 32.0 32.0 100.0

Total 100 100.0 100.0


Figure 5.7 Impact of quality of ingredients

0 2

12

54

32

0

10

20

30

40

50

60

StronglyDisgree

Disagree Neutral Agree Strongly Agree


Page 40

Table 5.8 Impact of quality of ingredients-Mean

N Valid 100

Missing 0

Mean 4.1600

Mode 4.00

Std. Deviation .70668


Out of the 100 respondents 32% were strongly agreed to the statement & 54% respondents

were agreed with the statement. 12 respondents have said they are neutral with the statement

and 2 respondents disagreed with the statement. Table 5.8 shows the mean value is 4.16

which higher than neutral value.

This shows that majority of the sample was considering the quality of ingredients when they

become for a soft drink brand.

5.4.1.2 Analysis of impact of bottle shape

The second indicator of product quality was packaging. When considering the packaging of

soft drink it is bottle. So here the respondents were asked whether the bottle shape is an

important factor when they become loyal for a soft drink brand.

Table 5.9 Impact of bottle shape


Percent Cumulative

Percent

Valid Strongly Disagree

3 3.0 3.0 3.0

Disagree 23 23.0 23.0 26.0

Neutral 31 31.0 31.0 57.0

Agree 34 34.0 34.0 91.0

Strongly Agree

9 9.0 9.0 100.0

Total 100 100.0 100.0



Page 41

Figure 5.8 Impact of bottle shape

Table 5.10 Impact of bottle shape-Mean

N Valid 100

Missing 0

Mean 3.2300

Mode 4.00

Std. Deviation 1.00358


34% respondents were agreed with the statement & 9% respondents were strongly agreed

with it. However 31% respondents were neutral with the statement.23 respondent said

disagree with the statement while 3 respondents said they are strongly disagreeing with it.

Table 5.10 shows the mean value is 3.23

This indicates the bottle shape is not a so much important factor when become loyal for a soft

drink brand. It has an average impact on it.

5.4.1.3 Analysis of impact of standardized product

Next the respondents were asked whether Standardized product offering is an essential factor

for them when they buy a soft drink. This question was asked to measure the indicator

product standard

3

23

31

34

9

0

5

10

15

20

25

30

35

40

StronglyDisagree



Page 42

Table 5.11 Impact of standardized product


Percent Cumulative

Percent


Neutral 9 9.0 9.0 14.0

Agree 74 74.0 74.0 88.0

Strongly Agree

12 12.0 12.0 100.0

Total 100 100.0 100.0


Figure 5.9 Impact of standardized product

Table 5.12 Impact of standardized product-Mean

N Valid 100

Missing 0

Mean 3.9300

Mode 4.00



According to findings 74% respondents were agreed with the statement & 12% respondents

were strongly agreed with it. 9% respondents were neutral on the statement. Only 5

respondents were disagreed. Table 5.12 shows the mean value is 3.93 which say that they

usually expect standardized product when they buy a soft drink.

0 5

9

74

12

0

10

20

30

40

50

60

70

80

StronglyDisagree



Page 43

5.4.1.4 Analysis of impact of health values

The final main indicator used under the independent variable Product quality is health values

of product. Respondents were asked whether health values of the product gain their loyalty

towards that particular soft drink brand.

Table 5.13 Impact of health values of the product


Percent Cumulative

Percent


Neutral 6 6.0 6.0 9.0

Agree 66 66.0 66.0 75.0

Strongly Agree

25 25.0 25.0 100.0

Total 100 100.0 100.0


Figure 5.10 Impact of health values of the product

Table 5.14 Impact of health values of the product-Mean

N Valid 100

Missing 0

Mean 4.1300

Mode 4.00



0 3

6

66

25

0

10

20

30

40

50

60

70

StronglyDisagree



Page 44

From the total sample, 66 respondents were agreed with the statement & 25 respondents were

strongly agreed with it. But 6 were neutral & 3 respondents said they were not considering

about the health values when purchasing a soft drink by disagree the statement. Table 5.14

shows the mean value is 4.13 which higher than neutral value.

Those results demonstrate that most of the sample respondents are considering about the

health values when purchasing a soft drink.

5.4.1.5 Analysis of impact of product quality for repurchases

Next the respondents were asked whether overall product quality influence them to

repurchase that particular soft drink brand.

Table 5.15 Impact of product quality for repurchases

Frequency Percent

Valid Percent

Cumulative Percent

Valid Agree 68 68.0 68.0 68.0

Strongly Agree

32 32.0 32.0 100.0

Total 100 100.0 100.0


Figure 5.11 Impact of product quality for repurchases

0 0 0

68

32

0

10

20

30

40

50

60

70

80

StronglyDisagree



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Table 5.16 Impact of product quality for repurchases-Mean

N Valid 100

Missing 0

Mean 4.3200

Mode 4.00



The above table clearly shows 68% respondents were agreed with the statement & 32%

respondents were strongly agreed with it. Table 5.16 shows the mean value is 4.32 which

higher than neutral value. The results clearly indicate that majority of the respondents

repurchase the particular soft drink brand if it has a good product quality.

5.4.2 Analysis of Brand Personality

5.4.2.1 Analysis of impact of cheerful characteristics

Under the second independent variable Brand Personality, Sincerity was taken as first

indicator used to identify the impact of brand personality on brand loyalty. To measure it, the

respondents were asked whether cheerful characteristics of the brand increase the loyalty of

them for a soft drink brand.

Table 5.17 Impact of cheerful characteristics


Percent Cumulative

Percent


Neutral 27 27.0 27.0 36.0

Agree 61 61.0 61.0 97.0

Strongly Agree

3 3.0 3.0 100.0

Total 100 100.0 100.0



Page 46

Figure 5.12 Impact of cheerful characteristics

Table 5.18 Impact of cheerful characteristics-Mean

N Valid 100

Missing 0

Mean 3.5800

Mode 4.00



From the total sample, 61% respondents were agreed and 3% of respondents were strongly

agreed with the statement. However 27% respondents were neutral on the statement. Only

9% of the respondents had disagreed with statement. Table 5.18 shows the mean value is 3.58

which indicate that majority of the respondents like to cheerful characteristics of the brand

when they loyal for a soft drink brand.

5.4.2.2 Analysis of impact of excitement imaginative

Table 5.19 mention the summary of the results gathered from asking whether excitement

imaginative of the brand increase the loyalty of them for a soft drink brand. This question

was asked to measure the indicator excitement under the Brand personality.

9

27

61

3

0

10

20

30

40

50

60

70



Page 47

Table 5.19 Impact of excitement imaginative

Frequency Percent

Valid Percent

Cumulative Percent


Neutral 38 38.0 38.0 46.0

Agree 46 46.0 46.0 92.0

Strongly Agree

8 8.0 8.0 100.0

Total 100 100.0 100.0


Figure 5.13 Impact of excitement imaginative

Table 5.20 Impact of excitement imaginative-Mean

N Valid 100

Missing 0

Mean 3.5400

Mode 4.00



From the total sample of 100, 46 respondents were agreed and 8 respondents were strongly

agreed with the statement. However 38 respondents were neutral on the statement. Only 8

respondents had disagreed with statement. Table 5.20 shows the mean value is 3.54

Results demonstrate that nearly half of the sample respondents said excitement imaginative

can gain their loyalty towards a soft drink brand.

8

38

46

8

0

5

10

15

20

25

30

35

40

45

50



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5.4.2.3 Analysis of impact of success of the brand

Next the respondents were asked whether Success of brand in the market is important when

become loyal for soft drink brand. This question was asked to measure the indicator of

Competence.

Table 5.21 Impact of success of the brand in the market


Percent Cumulative

Percent


Neutral 22 22.0 22.0 28.0

Agree 59 59.0 59.0 87.0

Strongly Agree

13 13.0 13.0 100.0

Total 100 100.0 100.0


Figure 5.14 Impact of success of the brand in the market

Table 5.22 Impact of success of the brand in the market-Mean

N Valid 100

Missing 0

Mean 3.7900

Mode 4.00



6

22

59

13

0

10

20

30

40

50

60

70



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According to the findings 59% respondents were agreed with the statement & 13%

respondents were strongly agreed with it. But 22% respondents were neutral on the statement.

Only 6% respondents were disagreed. Table 5.22 shows the mean value is 3.79. These results

says that they usually look whether that brand is success or not in the market.

5.4.2.4 Analysis of impact of brand personality for repeat purchases

Next the respondents were asked whether overall brand personality influence them to repeat

purchase that particular soft drink brand

Table 5.23 Impact of brand personality for repeat purchases

Frequency Percent

Valid Percent

Cumulative Percent

Valid Neutral 18 18.0 18.0 18.0

Agree 68 68.0 68.0 86.0

Strongly Agree

14 14.0 14.0 100.0

Total 100 100.0 100.0


Figure 5.15 Impact of brand personality for repeat purchases

0 0

18

68

14

0

10

20

30

40

50

60

70

80

StronglyDisagree



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Table 5.24 Impact of brand personality for repeat purchases-Mean

N Valid 100

Missing 0

Mean 3.9600

Mode 4.00



Table 5.23 clearly shows 68% respondents were agreed with the statement & 14%

respondents were strongly agreed with it. 18% respondents are neutral on the statement. And

Table 5.24 shows the mean value is 3.96. The results clearly indicate that majority of the

respondents repurchase the particular soft drink brand if it has a good brand personality.

5.4.3 Analysis of Emotional Appeal

5.4.3.1 Analysis of impact of social appeal

Third independent variable was Emotional Appeal. Social appeal was taken as first indicator

to measure the impact of emotional appeal on brand loyalty of soft drink brand. Here the

respondents were asked whether Social appeals (Love, Friendship) of the brand attracted

them to be aware of soft drink brand.

Table 5.25 Impact of social appeal

Frequency Percent

Valid Percent

Cumulative Percent


Neutral 49 49.0 49.0 56.0

Agree 42 42.0 42.0 98.0

Strongly Agree

2 2.0 2.0 100.0

Total 100 100.0 100.0



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Figure 5.16 Impact of social appeal

Table 5.26 Impact of social appeal-Mean

N Valid 100

Missing 0

Mean 3.3900

Mode 3.00



Table 5.25 clearly shows that 42% respondents agreed with the statement and 2%

respondents strongly agreed. But 49% respondents were neutral on the statement and 7%

disagreed. And Table 5.24 shows the mean value is 3.39. So, a clear statement cannot be

made as there is a highly impact of social appeal on brand loyalty

5.4.3.2 Analysis of impact of Lifestyle Connection

The second indicator was Life style connection under the variable of emotional appeal. Here

the respondents were asked whether Life style connection of the brand retain their awareness

for a soft drink brand

7

49

42

2

0

10

20

30

40

50

60



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Table 5.27 Impact of lifestyle connection

Frequency Percent

Valid Percent

Cumulative Percent


Neutral 35 35.0 35.0 37.0

Agree 59 59.0 59.0 96.0

Strongly Agree

4 4.0 4.0 100.0

Total 100 100.0 100.0


Figure 5.17 Impact of lifestyle connection

Table 5.28 Impact of lifestyle connection-Mean

N Valid 100

Missing 0

Mean 3.6500

Mode 4.00



From the total sample, 59% respondents were agreed and 4% of respondents were strongly

agreed with the statement. However 35% respondents were neutral on the statement. Only

2% of the respondents had disagreed with statement.

2

35

59

4

0

10

20

30

40

50

60

70



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Table 5.26 shows the mean value is 3.65. Most of the respondents of the total sample

agreeing with the statement stated that they actually relate their lifestyles with Soft drink

brand they use.

5.4.3.3 Analysis of impact of emotional appeals for repeat purchases

Next the respondents were asked whether overall emotional appeal influence them to

repurchase that particular soft drink brand

Table 5.29 Impact of emotional appeals for repeat purchases

Frequency Percent

Valid Percent

Cumulative

Percent


Neutral 51 51.0 51.0 53.0

Agree 42 42.0 42.0 95.0

Strongly Agree

5 5.0 5.0 100.0

Total 100 100.0 100.0


Figure 5.18 Impact of emotional appeals for repeat purchases

2

51

42

5

0

10

20

30

40

50

60



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Table 5.30 Impact of emotional appeals for repeat purchases-Mean

N Valid 100

Missin

g

0

Mean 3.5000

Mode 3.00



Table 5.29 shows 42% respondents were agreed with the statement & 5% respondents

were strongly agreed with it. But the majority of the sample 51% respondents are neutral

with the statement. Table 5.28 shows the mean value is 3.5. The results indicate that there

is an impact of emotional appeal on repurchases the particular soft drink brand.

5.4.4 Analysis of Value Proposition

5.4.4.1 Analysis of impact of value for money

The final independent variable was Value proposition. Under this firstly respondents

were asked whether getting a value for money which they pay is an essential factor when

they buy a soft drink. This question asked to measure the indicator Value for money.

Table 5.31 Impact of value for money

Frequency Percent

Valid Percent

Cumulative

Percent

Valid Neutral 4 4.0 4.0 4.0

Agree 80 80.0 80.0 84.0

Strongly Agree

16 16.0 16.0 100.0

Total 100 100.0 100.0



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Figure 5.19 Impact of value for money

Table 5.32 Impact of value for money-Mean

N Valid 100

Missing 0

Mean 4.1200

Mode 4.00



Out of the total sample, 80 respondents were agreed & 16 respondents were strongly agreed

with the statement. These two kinds of respondents represent 96% of the total sample which

is a significant proportion. There are not any respondent disagreed with the statement where 4

respondent on neutral. Table 5.30 shows the mean value is 4.12 which higher than neutral

value.

The results indicate that a larger portion of the respondents in the sample expect significant

value for money which they for a soft drink.

5.4.4.2 Analysis of impact of experience value

Next the respondents were asked whether experience value of the soft drink get my loyalty

towards soft drink brand. This question was asked to measure the indicator of experience

value under the value proposition.

4

80

16

0

10

20

30

40

50

60

70

80

90

Neutral Agree Strongly Agree


Page 56

Table 5.33 Impact of experience value

Frequency Percent

Valid Percent

Cumulative Percent

Valid Neutral 13 13.0 13.0 13.0

Agree 74 74.0 74.0 87.0

Strongly Agree

13 13.0 13.0 100.0

Total 100 100.0 100.0


Figure 5.20 Impact of experience value

Table 5.34 Impact of experience value-Mean

N Valid 100

Missing 0

Mean 4.0000

Mode 4.00



According to findings 74% respondents were agreed with the statement & 13% respondents

were strongly agreed with it. 13% respondents were neutral on the statement. Here also not a

single respondent disagreed with the statement. Table 5.34 shows the mean value is 4.12

which higher than neutral value. This result says that they usually look for the experience

value of soft drink.

13

74

13

0

10

20

30

40

50

60

70

80

Neutral Agree Strongly Agree


Page 57

5.4.4.3 Analysis of impact of benefit value

Table 5.35 Impact of benefit value

Frequency Percent

Valid Percent

Cumulative Percent


Neutral 19 19.0 19.0 23.0

Agree 75 75.0 75.0 98.0

Strongly Agree

2 2.0 2.0 100.0

Total 100 100.0 100.0


Figure 5.21 Impact of benefit value

Table 5.36 Impact of benefit value-Mean

N Valid 100

Missing 0

Mean 3.7500

Mode 4.00



The final indicator which used under the independent variable value proposition was benefit

value. The respondents were asked whether they become loyal for a soft drink brand based on

the benefit value of soft drink.

4

19

75

2

0

10

20

30

40

50

60

70

80



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The above table clearly shows that 75% respondents agreed with the statement and 2%

respondents strongly agreed. Here 19% respondents were neutral on the statement where 7%

disagreed. Table 5.36 shows the mean value is 3.75 which can be made a statement as there is

an impact of benefit value on brand loyalty.

5.4.4.4 Analysis of impact of value proposition for repeat purchases

Next the respondents were asked whether overall experience and benefits influence them to

repurchase that particular soft drink brand.

Table 5.37 Impact of value proposition for repeat purchases

Frequency Percent

Valid Percent

Cumulative Percent

Valid Neutral 9 9.0 9.0 9.0

Agree 79 79.0 79.0 88.0

Strongly Agree

12 12.0 12.0 100.0

Total 100 100.0 100.0


Figure 5.22 Impact of value proposition for repeat purchases

0 0

9

79

12

0

10

20

30

40

50

60

70

80

90

StronglyDisagree



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Table 5.38 Impact of value proposition for repeat purchases-Mean

N Valid 100

Missing 0

Mean 4.0300

Mode 4.00



Table 5.36 clearly shows 79% respondents were agreed with the statement & 12%

respondents were strongly agreed with it. Not a single respondent disagreed with the

statement while 9% neutral on the statement. Table 5.38 shows the mean value is 4.03. The

results clearly indicate that majority of the respondents repurchase the particular soft drink

brand if it has a good value proposition.

5.5. CORRELATION ANALYSIS AND TESTING HYPOTHESES

Pearson‟s Product Moment Correlation Coefficient test was conducted to identify the

sensitiveness and the responsiveness between the variables in this research and to classify its

significance and direction of the relationships. The correlation analysis has been done in

many researches to fulfill the above requirements. The researcher of this study also will apply

correlation analysis to independent and dependent variables to test the hypothesis built in

chapter 04. Both correlation analysis and hypothesis testing will be done parallel. Proposed

four hypotheses will be tested here.

5.5.1. Hypothesis testing of 1st variable (Product Quality)




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Table 5.39 Relationship of product quality and brand loyalty

Correlations

Product_Quality Brand_Loyalty

Product_Quality Pearson Correlation 1 .209*

Sig. (2-tailed) .037

N 100 100

Brand_Loyalty Pearson Correlation .209* 1


N 100 100

*. Correlation is significant at the 0.05 level (2-tailed).


Hypothesis is accepted.

There has a relationship with the Product quality and Brand Loyalty. The relationship is

between Product quality and Brand Loyalty which is 0.209. All Correlations are significant at

the 0.05 level. Here we can see that not the stronger relationship is there but there is moderate

relationship with Product quality and Brand Loyalty. However far as mean values of sub

variables of product quality are concerned (depicted in table 5.8, 5.10, 5.12, 5.14). The total

product quality variable mean value is 3.8625 which mean there is a relationship with Product

quality and Brand Loyalty

Since there is a significant relationship between brand loyalty and product quality, the null

hypothesis, “There is no significant relationship between Product quality and Brand Loyalty

of soft drinks brand.” is rejected and H1 is accepted.

5.5.2. Hypothesis testing of 2nd

variable (Brand Personality)


H1: There is a no significant impact of brand personality on customer brand loyalty


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Table 5.40 Relationship of Brand Personality and brand loyalty

Correlations

Brand_Personal

ity Brand_Loyalty

Brand_Personality Pearson Correlation 1 .404**


N 100 100

Brand_Loyalty Pearson Correlation .404** 1


N 100 100

**. Correlation is significant at the 0.01 level (2-tailed).


Hypothesis is accepted

The above correlation analysis clearly shows that there is a significant relationship between

brand personality and brand loyalty of soft drinks brands. Because of the relationship

between the two variables is calculated to 0. 404. However far as mean values of sub

variables of brand personality are concerned (depicted in table 5.18, 5.20, and 5.22).So there

is a relationship with Product quality and Brand Loyalty.

Since there is a significant relationship between brand loyalty and brand personality of soft

drink brand, the null hypothesis, “There is no significant relationship between brand loyalty

and brand personality” is therefore rejected. Also it can be stated that since the significance

level (p value) is 0.000 there is a statistically significant relationship

5.5.3. Hypothesis testing of 3rd

variable (Emotional Appeal)




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Table 5.41 Relationship of emotional appeal and brand loyalty

Correlations

Emotional_App

eal Brand_Loyalty

Emotional_Appeal Pearson Correlation 1 .382**


N 100 100

Brand_Loyalty Pearson Correlation .382** 1


N 100 100

**. Correlation is significant at the 0.01 level (2-tailed).



The above correlation analysis clearly shows that there is a significant relationship between

emotional appeal and brand loyalty of soft drinks brands. Because of the relationship between

the two variables is calculated to 0. 382. However far as mean values of sub variables of

emotional appeal are concerned (depicted in table 5.26, 5.28). The total emotional appeal

variable mean value is 3.52 which mean there is a relationship with emotional appeal and

Brand Loyalty

Since there is a significant relationship between brand loyalty and emotional appeal of soft

drink brand, the null hypothesis, “There is no significant relationship between brand loyalty

and brand personality” is rejected. Also it can be stated that since the significance level (p

value) is 0.000 there is a statistically significant relationship between the two variables and

are linearly related.

5.5.4. Hypothesis testing of 4th

variable (Value Proposition)




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Table 5.42 Relationship of value proposition and brand loyalty

Correlations

Value_Propositi

on Brand_Loyalty

Value_Proposition Pearson Correlation 1 .095


N 100 100

Brand_Loyalty Pearson Correlation .095 1


N 100 100



There has a relationship with the value proposition and brand loyalty. The relationship is

between value proposition and brand loyalty which is 0.095. Here we can see that not the

stronger relationship is there but there is less relationship with value proposition and brand

loyalty. However far as mean values of sub variables of value proposition are concerned

(depicted in table 5.32, 5.34, 5.36). The total value proposition variable mean value is 3.9567

which mean there is a relationship with Product quality and Brand Loyalty

Since there is a significant relationship between brand loyalty and value proposition, the null

hypothesis, “There is no significant relationship between value proposition and brand loyalty

of soft drinks brand.” is therefore rejected and H1 is accepted.

5.6 CHAPTER SUMMARY

Under this chapter discuss the main part of the research that is the analysis of the collection

data. That is the most critical part of the research in that way use the mean, mode, standard

deviation for analysis the independent and dependent variables finally discuss the hypotheses

that way use the correlation for test the hypotheses.


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CHAPTER SIX

CONCLUTION AND RECOMMENDATIONS

6.1. INRODUCTION

This chapter is focused on drawing out conclusion from the analysis and discussion

performed in the previous chapters and give recommendations. Also this chapter includes

some suggestions for future researches. The gathered data which were analyzed; interpreted

and tested hypotheses will be then used give an overall summary and conclusion for this

study with regards to determine the impact of brand values on brand loyalty towards soft

drinks.

6.2. OVERALL SUMMARY OF STUDY

The key objective of this study was to determine the impact of brand values on customer

brand loyalty towards soft drink in youth segment in Sri Lankan market. Before all,

researcher has done a broad analysis for brand values as well as the brand loyalty concept.

The key objective then divided into specific sub objectives according to the independent

variables found in previous literatures. The significance of this study was lack of previous

researches carried out in this nature. In global context more researches can be found which

were done on the some brand values and impact to brand loyalty.

In this research, brand values like product quality, brand personality, emotional appeal, and

value proposition are the independent variables and customer brand loyalty is dependent

variable. Hypotheses were developed through the past literature available to test the

relationships with the brand values and customer brand loyalty.

Population of this research is youth age between 15 & 30 in Sri Lanka and by using

convenience sampling method researcher select 100 respondents as the sample from two

districts in Sri Lanka called Colombo, and Gampaha to represent whole country. The data

collected through the questionnaire has been tabulated for meaningful analysis and ease of

interpretation. The data will be analyzed using mathematical techniques to identify and


Page 65

validate the theory that is to be justified. Primarily Descriptive analysis and Pearson‟s

Correlation techniques of data analysis were mainly used in this study. A number of

relationships were identified through the testing hypotheses which were done in previous

chapter. The findings of this research were discussed thoroughly with the backing of

literature in a line with the objectives of this research been fulfilled.

So the findings of research will be highly useful for the soft drink companies who are playing

in the industry, and companies are planning to enter the soft drink market. And advertising

agencies are also benefited because they can identify which brand values should emphasis in

their advertising campaigns when they advertise a soft drink brand.

6.3. SUMMARY OF THE FINDINGS

There is an impact of product quality on customer brand loyalty

Qualities of ingredients, bottle shape, standards of product and health values of product are

measured under the product quality.

The impact for brand loyalty by product quality is most affected by qualities of

ingredients (Mean value is 4.16)

There is an impact of brand personality on customer brand loyalty

Sincerity, excitement, competence are measured under the brand personality.

The impact for brand loyalty by brand personality is most affected by success of the

brand which use measure the competence. (Mean value is 3.79)

There is an impact of emotional appeal on customer brand loyalty

Social appeal and lifestyle connection are measured under the emotional appeal.

The impact for brand loyalty by emotional appeal is most affected by lifestyle

connection due to consumers match their lifestyles with Soft drink brand. (Mean

value is 3.65)


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There is an impact of value proposition on customer brand loyalty

Value for money, experience value and benefit value are measured under the value

proposition.

The impact for brand loyalty by value proposition is most affected by value for

money. They expect perceived value for money that they pay. (Mean value is 4.12)

6.4. CONCLUSION AND RECOMMENDATION

Throughout this study, researcher has tried to accomplish the key objective by using

dependent and independent variables. It is to assess the impact of brand values on customer

brand loyalty towards soft drink in youth segment in Sri Lankan market. Testing hypotheses

as well as other analysis has someway proved the impact of brand values on customer brand

loyalty towards soft drink. Here the notable thing is some of factors of variables highly

impact on customer brand loyalty. So it is important for the soft drink companies who are

playing in the industry, and companies are planning to enter the soft drink market when build

a value for their brands.

Soft drink is an important product item in modern society both urban and rural areas.

Consumers mainly purchase the product for their refreshment. Today it has a significant place

in various parties and picnics. In the past decade it has become a part of foods. People use

soft drinks along with foods. Consumers purchase decisions for soft drinks are always

influenced by a number of factors, which lead them to select a particular brand in preference

to others.

As per this study researcher selected youth segment because the importance of these

consumers is also widely recognized in the soft drink market. These young customers are

recognized as style setters that influence consumption change than other market segments

.Buying behavior of youth is determined by values like the image, lifestyle connection. But

there are significant impacts by quality of product also alongside context specific factors such

as gender and lifestyle. The challenge was to researcher is to discover which factors are

mostly affected because marketing managers have insufficient knowledge about what drives

this market segment.


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At present many brands of soft drink are being consumed in Sri Lanka. Consumers can

express their attachment and be loyal to a brand. Consumers avoid brands which are not

attributed as expected by them. Customers‟ brand loyalty for soft drinks is always influenced

by a number of brand values that lead them to select a particular brand in preference to other

available brands in the market. According to research consumers of soft drink has highly

ranked taste and quality of soft drink and brand image. According to this study most popular

soft drink brand in youth segment is Elephant Cream Soda. Brand values of ECS have been

really connected with youth lifestyle and its taste has got highly attraction of youth segment.

When customers buy a soft drink consider about the quality ingredients. That means taste and

quality of a soft drink has significant role. When Elephant Cream Soda and global brands

such as Coca Cola and Pepsi absorb the market, their taste has much affected. Under the

product quality the bottle shape also significant impact on get the attractive and retain

towards that soft drink brand. The newly entered soft drink brand Kik Cola couldn‟t grab the

market. Their bottle design was not attractive for the young generation.

The research revealed that health values also a considerable factor for soft drink. Health

conscious is a new trend due to the knowledgeable young generation. So manufacturers

should give the message to the customers the soft drinks never cause of their healthy.

As per the young customers are recognized as style setters, the brand personality is the most

affected brand value. According to research success of the brand has highly indicated under

brand personality. But when soft drink brand become a success brand it is affected by other

elements of brand personality. When researcher asked whether cheerful characteristics of the

brand increase the loyalty of them for a soft drink brand, majority of the respondents have

agreed with that. It can be further concluded by practice of the current market. The top three

ranked soft drink brands Elephant Cream soda, Coca Cola and Pepsi have used cheerful

characteristics for develop their brand personality. When companies develop their brand

personalities they can use celebrity endorsements. Sports category is the most important

celebrity category for the soft drink industry if emphasize cheerfulness of the brand.

Companies should carefully use the endorsement of celebrities, because it will highly

influence to the brand personality because as the attitude towards the advertisement

significantly impacts brand attitudes.

For the brand loyalty emotional appeals have high values. Researcher have identified youth

segment actually relate their lifestyles with soft drink brand they use. So marketers should


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give emotional appeals with the lifestyle connection. So soft drink marketers are well aware

of the fads and trends of the youth culture. Young may use brands to become trendsetters and

opinion leaders for several groups in society. When consider the value proposition customers

thought they have to feel the product for repeat purchasing. Soft drink brand should emphasis

their experience value to the customer

6.5. SUGGETIONS FOR FUTURE RESEARCHES

This study carried out to the impact of brand values on customer brand loyalty towards soft

drink in youth segment in Sri Lankan market. This study is only focused on carbonated soft

drink. But nowadays, demand for non-carbonated soft drink such as natural drinks based on

fruits is being increased due to the health conscious. In that way in future should evaluate

which brand values are very affective for carbonated and non-carbonated soft drinks.

So there is a very good opportunity for a future research to carry out a research to test which

brand values are very affective when positioning a non-carbonated soft drink brand.

6.6 CHAPTER SUMMARY

Under this chapter discuss the final overall summary of the research, conclusion,

recommendation and suggestions of future researches.


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APPENDIX I

Questionnaire

The Effect of Brand Values on Customer Brand Loyalty towards

Soft Drink Brands among Youth Segment in Sri Lanka

I am a final year undergraduate of the Department of Marketing Management of University

of Kelaniya. I am conducting a research for my academic purpose. As a part of my research I

would like to gather some information from you. Your information will be highly valuable

for this study and the information provided will be kept confidential and for academic use

only. I greatly appreciate your cooperation.

1. Gender

Male Female

2. Age Level

15-20 21-25 26-30

3. Monthly Income Level

Less than Rs.10000 Rs.10000-Rs.20000

Rs.20000-Rs.30000 Rs.30000-Rs.40000

Rs.40000 above

4. Occupation

Student Unemployed

Trainee Executive-Private

Executive-Government Manager

Self Employed


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5. Which soft drink brand is your most favorite among following popular soft drinks

brands available in Sri Lanka

Coca-Cola Portello

Pepsi EGB

Fanta Sprite

Elephant Cream Soda 7up

Fanta Cream Soda Other…………….

6. Rank the importance of following brand values of soft drinks according to your

purchasing behavior

Taste & Quality

Value for Money

Brand Image

Design

Associated Feelings

Please indicate your level of agreement or disagreement with each of the following

statements regarding Product quality of soft drinks

Strongly

Disagree

Disagree Neutral Agree Strongly

Agree

7.I become loyal for a soft drink brand

based on the quality of ingredients

8. The bottle shape is an important factor

when I become loyal for a soft drink

brand

9.Standardized product offering is an

essential factor for me when I buy a soft

drink


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10.Health values of the product gain my

loyalty towards that particular soft drink

brand

11. Overall product quality influence me

to repurchase that particular soft drink

brand


statements regarding Brand Personality of soft drinks

Strongly

Disagree


Agree

12. Cheerful characteristics of the brand

increase the loyalty of me for a soft

drink brand

13. Excitement imaginative of the brand

increase the loyalty of me for a soft

drink brand

14. Success of brand in the market is

important when I become loyal for a soft

drink brand.

15. Overall brand personality influence

me to repurchase that particular soft

drink brand


statements regarding Emotional Appeals of soft drink brands

16. Social appeals (Love, Friendship) of

the brand attracted me to be aware of soft

drink brand

17.Lifestyle connection of the brand retain

my awareness for a soft drink brand

18. Overall emotional appeals of the brand

influence me to repurchase that particular

soft drink brand


Page 72


statements regarding Value Proposition of soft drink brands

Strongly

Disagree


Agree

19. Getting a value for money which I

pay is an essential factor when I buy a

soft drink

20. Experience value of the soft drink

get my loyalty towards soft drink brand

21. I become loyal for a soft drink brand

based on the benefit value of the soft

drink

22. Overall experience and benefits

influence me to repurchase that

particular soft drink brand

……………………………Thank You…………………………


Page 73

APPENDIX II

Table 5.1 Analysis of “Gender”

Gender

Frequency Percent

Valid Percent

Cumulative Percent

Valid Male 68 68.0 68.0 68.0

Female 32 32.0 32.0 100.0

Total 100 100.0 100.0

Table 5.2 Analysis of “Age”

Age Level

Frequency Percent

Valid Percent

Cumulative Percent

Valid 15-20 13 13.0 13.0 13.0

21-25 65 65.0 65.0 78.0

26-30 22 22.0 22.0 100.0

Total 100 100.0 100.0

Table 5.3 Analysis of “Income Level”

Monthly Income Level

Frequency Percent

Valid Percent

Cumulative Percent

Valid Less than Rs.10000

42 42.0 42.0 42.0

Rs.10000-Rs.20000

18 18.0 18.0 60.0

Rs.20000-Rs.30000

23 23.0 23.0 83.0

Rs.30000-Rs.40000

15 15.0 15.0 98.0

Rs.40000 above

2 2.0 2.0 100.0

Total 100 100.0 100.0


Page 74

Table 5.4 Analysis of “Occupation”

Occupation

Frequency Percent

Valid Percent

Cumulative Percent

Valid Student 28 28.0 28.0 28.0

Unemployed 1 1.0 1.0 29.0

Trainee 31 31.0 31.0 60.0

Executive-Private

24 24.0 24.0 84.0

Executive-Government

7 7.0 7.0 91.0

Manager 8 8.0 8.0 99.0

Self Employed

1 1.0 1.0 100.0

Total 100 100.0 100.0

Table 5.5 Analysis of most favorite soft drink brand

Which soft drink brand is your most favorite among following

popular soft drinks brands available in Sri Lanka

Frequency Percent

Valid Percent

Cumulative Percent

Valid Coca-Cola

19 19.0 19.6 19.6

Pepsi 14 14.0 14.4 34.0

Fanta 11 11.0 11.3 45.4

Elephant Cream Soda

28 28.0 28.9 74.2

Portello 4 4.0 4.1 78.4

EGB 8 8.0 8.2 86.6

Sprite 7 7.0 7.2 93.8

7up 6 6.0 6.2 100.0

Total 97 97.0 100.0

Missing System 3 3.0

Total 100 100.0


Page 75

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THE IMPACT OF BRAND VALUES ON CUSTOMER BRAND LOYALTY IN YOUTH SEGMENT